Seylan Bank PLC (formerly Seylan Bank Limited) Vs. Mohamed Rasheed Mohamed Farook – SC APPEAL NO. 237/2014-2021

In the case between Seylan Bank PLC (formerly Seylan Bank Limited) and Mohamed Rasheed Mohamed Farook, the court addressed the issue of compliance with procedural requirements under the Debt Recovery (Special Provisions) Act, No. 2 of 1990, particularly regarding the grant of leave to appear and show cause against a decree nisi without the furnishing of adequate security. The core holding determined that unconditional leave cannot be granted unless a prima facie sustainable defence is established, complying strictly with sections 6(2) and 6(3) of the Act. It was further found that the procedural mechanism under the Act prohibits the unconditional filing of an answer absent statutory preconditions. This decision reaffirmed the principle that statutory procedures governing debt recovery acti